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7 March, 14:47

Smart Systems Inc. is a firm that manufactures and sells desktop computers to the consumer and business market segments. After extensive market research and portfolio planning, the firm decides to launch a new line of mobile phones. In this example, Digi-Smart Systems uses which of the following strategies? a. Forward vertical integration b. Related diversification c. Market penetration d. Market development e. Backward vertical integration

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  1. 7 March, 15:12
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    b. Related Diversification.

    Explanation:

    As Smart Systems Inc. is a firm that manufactures and sells desktop computers to the consumer and business market segments. After extensive market research and portfolio planning, the firm decides to launch a new line of mobile phones. Digi-Smart Systems uses related diversification strategy to launch new line of mobile phones. Related diversification happens when an organization expands its operations, activities or product and services into product lines that are similar to those which they are currently offering to its customers. As it can be seen in this example as well when Smart Systems Inc. which is the manufacturer of desktop computers has started making mobile phones as well.
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